Written answers

Thursday, 25 November 2021

Department of Transport, Tourism and Sport

Aviation Industry

Photo of Matt ShanahanMatt Shanahan (Waterford, Independent)
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213. To ask the Minister for Transport, Tourism and Sport the details of the administrative process and computational method of allocating funding to specific airports with respect to the €126 million aviation package announced on 12 October 2021; and if he will make a statement on the matter. [58136/21]

Photo of Matt ShanahanMatt Shanahan (Waterford, Independent)
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214. To ask the Minister for Transport, Tourism and Sport if the €126 million aviation package is for the furtherance of the ongoing capital works at Cork and Dublin airports; and if he will make a statement on the matter. [58137/21]

Photo of Hildegarde NaughtonHildegarde Naughton (Galway West, Fine Gael)
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I propose to take Questions Nos. 213 and 214 together.

As the Deputy is aware, on 12 October Government announced a €126m funding package for Aviation. Under this package funding of €90m will be allocated in 2021, subject to State aid approval, under the Covid-19 Supplementary Support Scheme and €36m will be allocated in 2022 under the Regional Airports Programme 2021-2025. Details of the administration of this funding is detailed as follows:

(1) Covid-19 Supplementary Support Scheme

€90m will be allocated to Dublin, Cork and Shannon airports under a Damages Measure to help address liquidity issues at airports as a result of Covid-19. This funding will continue to provide Airports with flexibility to continue their roll out of route incentives/charge rebates, in consultation with airlines, supporting recovery and growth of connectivity.

In order to ensure parity of treatment, funding will be allocated, subject to State aid approval, to airports proportionate to the damage caused. In this regard, funding will be allocated proportionately in line with 2019 passenger numbers at the airports.

This €90m in funding builds on the €20m in funding provided to Dublin, Cork and Shannon earlier this year and the €6m in funding under State Aid approved Schemes which supported our smaller airports Ireland West, Kerry and Donegal Airports that provide connectivity.

(2) Regional Airports Programme 2021-2025

Funding of €36m will be provided in 2022 to support eligible regional airports under the Regional Airports Programme. Shannon, Cork, Ireland West, Donegal and Kerry airports are eligible for current and capital funding under the Programme in 2022.

The Programme provides targeted funding through a number of capital and operational grant schemes for safety and security related projects and activities and projects which support sustainability objectives, enabling these airports to identify and implement climate related efficiencies and build resilience against the likely impacts of climate change. The Programme also funds Exchequer funded Public Service Obligation air services between Donegal and Dublin.

Full details of the administration of the various schemes under this Programme are available via the following link Regional Airports Programme 2021-2025.

With regard to capital works at Cork and Dublin Airports, Cork Airport will be eligible to put forward projects for consideration for capital support under the Regional Airports Programme in 2022. Dublin Airport, by virtue of their size and passenger numbers, is not eligible for supports under this Programme.

Photo of Matt ShanahanMatt Shanahan (Waterford, Independent)
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215. To ask the Minister for Transport, Tourism and Sport the timeline with respect to various approvals within Departments in respect of the current €40 million capital project being undertaken at Cork Airport; and if he will make a statement on the matter. [58138/21]

Photo of Hildegarde NaughtonHildegarde Naughton (Galway West, Fine Gael)
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As the Deputy is aware, Cork Airport is undertaking a Runway Reconstruction and Remediation Project. This is the single-biggest construction project, and the biggest investment by daa, at Cork Airport since the opening of the new terminal building in 2006.

In line with the Covid-19 Regional State Airports Programme 2021, Cork Airport was invited to apply for capital funding under the Programme. Applications received from Cork Airport included a proposal for the runway overlay project.

Given the costs involved, this project fell within the scope of the Public Spending Code (PSC). In this context, Cork Airport submitted all required documentation under the PSC, up to and including a Final Business Case (FBC) for the project. The Strategic Research and Analysis Division (SRAD) of my Department conducted a technical assessment of the appraisal to determine its compliance with the PSC. On the basis of the submitted material, SRAD concluded, on 23 June 2021, that the economic appraisal had been conducted in accordance with the relevant guidelines as set out in the PSC. The project was then recommended to me for funding by an Assessment Panel established by my Department, and comprising of representatives from my Department, the Irish Aviation Authority and NewERA.

On foot of the above, €10m in Exchequer funding for this project was announced on 12th July 2021 under the Covid-19 Regional State Airports Programme 2021.

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